Corporate Nigeria and shareholders of quoted companies in Nigeria are having a swell time thanks to the Central Securities Clearing System (CSCS) Limited’s digital data storage and retrieval depository
investigations revealed that the solution which revolves around Content Management and Data Warehousing Solution called Enterprise Content Management Solution helps capture, store, and search as well as deliver both structured and unstructured data.
Launched in 2005, by the CSCS, clearing house of the Nigerian Stock Exchange, it is archiving and retrieval of digital data center for corporate organization and provide reliable storage for National Data.
The system has put CSCS Ltd at the cutting edge of modern technology in its bit to expand and modernize its clearing, settlement, custody service and other Central Depository function making it a world class center through its multiple communication channels while providing additional services which include the following:
Effective disaster recovery offsite data center for organizations such as oil and gas companies, government, banks conglomerates that run Mission-Critical Applications. It will be designed to accommodate small and large corporate bodies.
Elsewhere, the inter-member transfer of the CSCS is affording investors freedom of action.
Investors are allowed to transfer custody of their investment to any stockbroking firm of choice at any time. Investors are not compelled to do stock transactions perpetually with a stockbroking firm.
If a stockbroking firm is sanctioned by the regulatory authorities, clients can transfer custody of their investment to any chosen stockbroking firm.
If transfer is initiated by the resident (current) Firm. The stockbroking firm would write CSCS to move the client account (based on the client's request) to another stockbroking fiml. This letter would be addressed to the Managing Director/CEO of CSCS.
The letter would state the name of the client, account number, name of stock and quantity of stock to be moved.
Confirmation of the transfer from CSCS can be obtained through the acknowledgement copy of the transfer letter.
Thereafter, the new house could go ahead to trade on the stock.
If transfer is initiated by the Target stockbroking firm
The new house would write a letter to CSCS (addressed to the Managing Director/CEO) with client's letter of instruction to the stockbroking firm attached, stating that he wants to transfer his account with the specified stock(s) and quantity from his former house to the new house. The former house would be copied.
Confirmation of the transfer from CSCS can be obtained through the acknowledgment copy of the transfer letter.
Thereafter, the broker would go ahead to trade on the stock(s).
Common mistakes associated with Inter-member transfers:
Some stockbroking firms initiating the transfers did not ascertain if the stocks were still available before initiating letters of transfer. This was necessary in order to reduce faulty transfer request. Transfer requests were usually made to the Traded Stock Account of the target stockbroking firm. This was wrong and unacceptable because it amounted to changes of ownership without trades.
The Clearing House Number and the Stock Account Number of the clients being transferred in some instances were not stated for ease of transfer. There were open-ended transfer request such as "transfer all the stocks belonging to Mr. A", this kind of request could not be treated because the names of the stocks and the quantities to be moved were not explicitly stated. Some shareholders instructed CSCS to transfer their accounts to other houses. Instructions of that nature were expected to come through their stockbroking firms. Letter of consent from the target house without the acknowledgement of the client's former house was not entertained.